Purpose: The study aimed to compare auditory processing and cognitive test scores measured in a clinical setting with that measured in a school setting using a repeated-measures design. This was done on typically developing children and children with auditory processing disorder (APD). Method: Thirty-two children (16 typically developing and 16 with APD), aged 7 years, were evaluated using three diagnostic auditory processing tests and a cognitive test. The tests included the Speech Perception in Noise Test in Kannada, the Gap Detection Threshold Test, the Dichotic Consonant-Vowel Test, and the Auditory Memory and Sequencing Test in Kannada. All the children were evaluated in an audiological diagnostic setting, as well as in their school. Results: No significant difference in scores was obtained in the two settings for all the four tests that were administered. This was seen in the typically developing children and the children with APD. Additionally, the pass/fail decision for each test did not alter in the two settings. Moderate to almost perfect agreement was seen between the tests carried out in the two settings in both groups, on a Kappa test of agreement. In both settings, the children with APD performed significantly poorer than the typically developing children on the four diagnostic tests. Conclusions: The findings of the study indicate that the diagnostic auditory processing tests and the cognitive test can be carried out in school settings as effectively as tests carried out in an audiological diagnostic clinical setting. This will enable carrying out diagnostic tests on children in schools soon after they are referred on screening auditory processing tools, administered in the educational setting. This will prevent missing diagnosis of children who fail to report to a diagnostic audiological center for detailed auditory processing evaluation.